Home » News » The Lower House signed into law the restructuring of the debt issued under local legislation

The Lower House signed into law the restructuring of the debt issued under local legislation

The regulation provides for the restructuring of the national government debt implemented in public securities denominated in United States dollars issued under the law of the Argentine Republic through a swap operation, with the aim of giving equal treatment to local bondholders in relation to external creditors.

The initiative endorses the exchange of debt in dollars issued under local law, whose holders will be offered new bonds in dollars and also in pesos adjusted by CER.

According to the initiative, holders of eligible securities that do not adhere to the invitation to exchange will continue with their deferred payments until December 31 of next year, under the plan that is currently in force.

When speaking as an informant member for the ruling party, the head of the Budget and Finance Commission of the Lower House, Carlos Heller, He welcomed the fact that this project has arrived at the venue with a single opinion unanimously and added that it is being dealt with at an opportune moment, after the announcement of the agreement of the Government with external creditors.

In addition, he claimed “what Minister Martín Guzman said, in that this is the maximum effort that Argentina could make; because we do not want to promise things that we cannot fulfill”.

In turn, the deputy of the Everyone’s Front and head of the Finance Commission, Fernanda VallejosHe stressed -after overcoming some connection problems- that the initiative respects both the objective possibilities of the Argentine economy to fulfill the commitments, as well as the equitable treatment between debt holders under foreign and local legislation. “This law must be the introduction to a new chapter in our history, that of Nevermore to the cycles of flight and indebtedness”, maintained the economist.

Meanwhile, the pampeano Hernán Pérez Araujo He said that “today we are going through a historic journey in our country in what has to do with debt reduction; a history of debt reduction that, once again, over the years we see that a Peronist government has to face, putting itself height of history.

Meanwhile, the deputy of the PRO, Luciano Laspina, welcomed the announcement of the foreign debt restructuring and added that the government “counts on the opposition” if it decides “to present an economic plan that will allow the pandemic to emerge without generating an inflationary crisis.”

“Getting out of default and relieving the weight of the debt is a necessary but not sufficient condition for stability and recovery, and the proof of this is that Argentina has been stagnant with strong inflation for 10 years, even in times when we were still in default. and without access to external debt markets, ”he evaluated and indicated that the“ problem remains the fiscal deficit ”.

For his part, the head of the Interblock Federal Unit for Development, JI dared Luis Ramón, he indicated “we are going to accompany this project because we believe that it is a message to society and I am going to insist that Congress does not have to continue to delegate decisions such as debt taking”.

At the time of the closings, the owner of the Together for Change block, Mario Negri, The renegotiation of the debt was highlighted as a very important step since it will allow access to the financing market.

“We are going to vote on it today is not an objective in itself, in any case it removes uncertainty from us to see if we can open a path of growth. We have a huge challenge, not only on the external front, “he said.

“What we have to solve is if we find a growth path and see if we can find a point of agreement there,” he continued and closed: “A program and a plan are needed. What you cannot do is not have a course. So we are approving this law unanimously, we have a moral debt to the country. “

For the Front of All, the secretary of the Budget Commission, Itai Hagman, He asked to review the conceptual frameworks and have an accurate diagnosis of the economic situation.

“We do not want to return to Argentina prepaid. We want to solve the problems we had before the pandemic, “he said.

“The main sin that was committed in the previous administration is not the amount of debt. The previous government changed the composition of Argentine debt. They dollarized and privatized the portfolio of creditors, ”he said.

“Here there are those who say that Argentina does not have an economic plan. It is paradoxical because that was the creditors’ argument and they still closed”, he continued and insisted: “A sustainable debt is a debt that can be paid and is compatible with development productive”.

“Today is an important day for Argentina, the announcement is important to start the country. Many thought that it would not be achieved. I want to close by remembering that each time we have risen he was defending national interests and putting people above all else. If we follow this path, what will never happen to us is that we have to take measures against our people, ”he closed.

A report published by the Budget Office of the National Congress, explained that the project for the restructuring of US $ 41,717 million of dollar securities issued under Argentine law it implies the relief in payments for almost u $ s20,000 million until 2030.

In the text of the project, it is highlighted that “Argentina’s repayment capacity is related both to long-term sustainable growth and to the commitments that have been assumed in the offer made for the restructuring of public debt issued under foreign law “

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